ICE Canola Climbs Higher Following Soybeans

A Winnipeg-based canola broker said that canola had little choice but to follow soybeans higher, with commodity and index funds adding to their long positions. The broker said the gains in soybeans were tied to the weaker US dollar. While the Canadian dollar was showing some relative strength, it was underperforming other international currencies which added to the firmer tone in canola.

In addition to the fund buying, light amounts of domestic crusher and exporter pricing were also noted in the canola market.

However, canola was lagging soybeans to the upside, amid ideas that canola had become too expensive compared to some of the other oilseeds, according to the broker.

Light commercial and farmer selling, along with some speculative profit-taking also tempered the upside in canola, according to traders.

At 10:53 CDT, about 12,000 canola contracts had changed hands, with spreading accounting for over 7,000 of the contracts traded.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:53 CDT: